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jurisdiction

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									                     “Right to Audit” Clause Survey, February/March 2004


Jurisdiction          Right to Audit Clause
Deschutes County,     Access to Records. Contractor shall maintain fiscal records and all other records
OR                    pertinent to this Contract.

                      a.      All fiscal records shall be maintained pursuant to generally accepted
                              accounting standards, and other records shall be maintained to the extent
                              necessary to clearly reflect actions taken. All records shall be retained
                              and kept accessible for at least three years following the final payment
                              made under this Contract or all pending matters are closed, which ever is
                              later. If an audit, litigation or other action involving this Contract is started
                              before the end of the three year period, the records shall be retained until
                              all issues arising out of the action are resolved or until the end of the three
                              year period, whichever is later.
                      b.      County and its authorized representatives shall have the right to direct
                              access to all of Contractor's books, documents, papers and records
                              related to this Contract for the purpose of conducting audits and
                              examinations and making copies, excerpts and transcripts. These records
                              also include licensed software and any records in electronic form,
                              including but not limited to computer hard drives, tape backups and other
                              such storage devices. County shall reimburse Contractor for Contractor's
                              cost of preparing copies. At Contractor's expense, the County, the
                              Secretary of State's Office of the State of Oregon, the Federal
                              Government, and their duly authorized representatives, shall have license
                              to enter upon Contractor's premises to access and inspect the books,
                              documents, papers, computer software, electronic files and any other
                              records of the Contractor which are directly pertinent to this Contract for
                              the purpose of making audits, examinations, excerpts, copies and
                              transcriptions.

Henrico County, VA    23. Record Retention/County Audits:
                      a. The successful bidder shall retain, during the performance of the contract and
                      for a period of three years from the completion of the contract, all records
                      pertaining to the successful bidder's bid and any contract awarded pursuant to this
                      Invitation to Bid. Such records shall include but not be limited to all paid vouchers
                      including those for out-of-pocket expenses; other reimbursement supported by
                      invoices, including successful bidder's copies of periodic estimates for partial
                      payment; ledgers, cancelled checks; deposit slips; bank statements; journals;
                      contract amendments and change orders; insurance documents; payroll
                      documents; timesheets; memoranda; and correspondence. Such records shall be
                      available to the County on demand and without advance notice during the
                      successful bidder's normal working hours.
                      b. County personnel may perform in-progress and post-audits of the successful
                      bidder's records as a result of a contract awarded pursuant to this Invitation to Bid.
                      Files would be available on demand and without notice during normal working
                      hours.

Kansas City, MO       Following is the “Right to Audit” language used for Aviation Department
                      Concession Agreements. This is from a draft of an agreement we are negotiating,
                      but the audit language is essentially the same for all of our concession
                      agreements.

                      Section 409: Retention of Records.
                      Upon commencement of the Term, Company agrees that it will make available to
                      the City within 10 business days of written notice, the books and records of
                      accounts of Company for the last three twelve month periods completed and the
                       “Right to Audit” Clause Survey, February/March 2004


Jurisdiction            Right to Audit Clause
                        current Agreement Year, showing the information required under this Article IV or
                        other similar article(s) contained in the Previous Agreement, relating to business
                        conducted at the Airport, the deductions there from, and other pertinent information
                        required by the provisions of this Article or other similar articles contained in the
                        Previous Agreement. Company’s obligation to retain such books and records is
                        limited to the extent required under this Agreement, Interim Agreement and/or
                        Previous Agreement, until the Company retains sufficient books and records to
                        meet the retention requirements stated above. Upon the City’s prior written notice
                        such books and records of accounts must be accessible during regular business
                        hours to City or its duly authorized agents or auditors only for the purpose of
                        verifying compliance by Company with the terms of this Agreement, Interim
                        Agreement and/or Previous Agreement. At the City’s request, Company will pay
                        for the copying and delivery of all records and books requested by the City. In the
                        event the City determines that the auditors need to travel to the Company’s
                        location where the books and records are kept, Company will pay for the
                        reasonable and customary travel and other incidental costs incurred by the City’s
                        auditors.

                        Section 410: Independent Certified Public Accountants.
                        Wherever the statement of an Independent Certified Public Accountant is required,
                        the parties agree that said CPA must not be a member of Company’s staff or firm.

                        Section 411: City’s Right to Audit Statements and Reports.
                        City shall have the right to audit the statements and reports provided by Company
                        in accordance with Article IV herein. Except as provided in Section 409 above, the
                        cost of audit shall be borne by City; unless the audit reveals an underpayment of
                        Annual Concession Fees by Company of 5% or greater, or if the audit reveals that
                        the condition of the Company’s records is such that the revenue due City cannot
                        reasonably be properly determined. In the event of either condition described
                        above, the reasonable cost of the audit, including any applicable travel costs, must
                        be borne by the Company which must be payable within five business days of
                        receipt of an invoice.


                        Following is the City’s standard contract language related to the City’s “Right to
                        Audit.” This included as supplemental conditions to most, if not all, City contracts.

                        H. Audit
                        1. The City Auditor, the City’s Internal Auditor, the City’s Director of Human
                        Relations and the City department administering this Contract shall have the right
                        to audit this Contract and all books, documents and records relating thereto.

                        2. CONTRACTOR shall maintain all its books, documents and records relating to
                        this Contract during the Contract period and for three (3) years after the date of
                        final payment.

                        3. The books, documents and records of CONTRACTOR in connection with this
                        Contract shall be made available to the City Auditor, the City’s Internal Auditor, the
                        City’s Director of Human Relations and the City department administering this
                        Contract, within ten (10) days after written request.

Metro Louisville, KY    The Contractor shall maintain, during the term of the contract, and retain not less
                        than five years after the final date of payment under the contract complete and
                “Right to Audit” Clause Survey, February/March 2004


Jurisdiction     Right to Audit Clause
                 accurate records of all of the Contractor's costs which are chargeable to the City of
                 Louisville under the Contract; and the City of Louisville shall have the right, at any
                 reasonable time, to inspect and audit those records by authorized representatives
                 of its own or of any public accounting firm selected by it. The records to be thus
                 maintained and retained by the Contractor shall include (without limitation): (a)
                 payroll records accounting for total time distribution of Contractor's employees
                 working full or part time on the Contract (to permit tracing to payrolls and related
                 tax returns), as well as canceled payroll checks, or signed receipts for payroll
                 payments in cash; (b) invoices or receipts for purchases, receiving and issuing
                 documents, and all the other unit inventory records for Contractor's stored stock or
                 capital items; and (c) paid invoices, receipts and canceled checks for materials
                 purchased and for subcontractors; and any other third parties' charges.

Milwaukee, WS    RECORDS.

                 A. Establishment and Maintenance of Records. Records shall be maintained in
                 accordance with requirements prescribed by the City with respect to all matters
                 covered by this Contract. Except as otherwise authorized, these records shall be
                 maintained for a period of six (6) years after receipt of the final payment under this
                 contract.

                 B. Documents of Costs. All costs shall be supported by properly executed
                 payrolls, time records, invoices, contracts or vouchers, or other official
                 documentation evidencing in proper detail the nature and propriety of other
                 account6ing documents pertaining in whole or in part to this Contract and shall be
                 clearly identified and readily accessible.

                 REPORT and INFORMATION. At such times and in such form as the CITY may
                 require, there shall be furnished to City such statements, records, reports, data,
                 and information as the City may request pertaining to matters covered by this
                 Contract.

                 AUDITS and INSPECTIONS. At any time during normal business hours and as
                 often as the City, the City's Comptroller or if federal or state grants or aids are
                 involved, as the appropriate federal or state agency may deem necessary, there
                 shall be made available to the City, the City's Comptroller or such agency for
                 examination all of its records with respect to all matters covered by this Contract
                 and the CONTRACTOR and any Subcontractors, shall permit the CITY, the City
                 Comptroller and/or representatives of the Comptroller General to audit, examine
                 and make excerpts or transcripts form such records, and to make audits of all
                 contracts, invoices, materials, payrolls, records of personnel, conditions of
                 employment, and other data relating to all matters covered by this contract.
                 Further, any contract issued by the CONTRACTOR to a Subcontractor for work
                 relating to this contact shall have an Audit Clause similar in form and execution to
                 this clause.

Orange, CA       20.      Audit of Records. In accordance with generally accepted accounting
                 principles, Consultant shall maintain reasonably full and complete records of the
                 cost of and completion of services performed under this Agreement. During the
                 term of this Agreement and for a period of two years after termination or
                 completion of this Agreement, City shall have the right to inspect and/or audit
                 Consultant's records pertaining to the performance of this Agreement at
                 Consultant's office. Consultant agrees to make available all records for inspection
                 or audit at its offices during normal business hours and upon 3 days notice from
               “Right to Audit” Clause Survey, February/March 2004


Jurisdiction    Right to Audit Clause
                City.
PwC Global      Below is a right to audit clause that I have seen organizations use effectively on
                capital expansion programs. As a penalty, it requires the contractor to pay for the
                audit if there are substantial findings. I have seen some organizations add
                language to penalize contractors as much as 100% of the overcharge amount. I
                hope this is useful for you and the others copied on this email.

                The OWNER or its designee shall be entitled to audit all of the CONTRACTOR's
                records for a period of three years after final payment or longer if required by law.
                CONTRACTOR records shall be maintained and subject to audit. Such records
                shall include but not be limited to accounting records, written policies and
                procedures; subcontract files (including proposals of successful and unsuccessful
                bidders, bid recaps, etc); original estimates; estimating work sheets;
                correspondence; change order files (including documentation covering negotiated
                settlements); backcharge logs and supporting documentation; general ledger
                entries detailing cash and trade discounts earned, insurance rebates and
                dividends and any other contractor records which may have a bearing on matters
                of interest to the OWNER Company in connection with the CONTRACTOR's work
                for the OWNER all of the foregoing hereinafter referred to as "records" shall be
                open to inspection and subject to audit and/or reproduction by the OWNER's agent
                or its authorized representative to the extent necessary to adequately permit
                evaluation and verification of: (a) CONTRACTOR compliance with contract
                requirements, (b) compliance with business practice contractual requirements, and
                (c) compliance with provisions for pricing change orders, invoices or claims
                submitted by the CONTRACTOR or any of its' payees.

                Other specific records subject to audit include all information, materials and data of
                every kind and character such as documents, subscriptions, recordings,
                computerized information, agreements, purchase orders, leases, contracts,
                commitments, arrangements, notes, daily diaries, superintendent reports,
                drawings, receipts, vouchers and memoranda, and any and all other agreements,
                sources of information that may in. The OWNER's judgment have any bearing on
                or pertain to any matters, rights, duties or obligations under or covered by any
                contract document. Such records subject to audit shall also include those records
                necessary to evaluate and verify direct and indirect costs, (including overhead
                allocations) as they may apply to costs associated with this contract. In those
                situations where contractor's records have been generated from computerized
                data (whether mainframe, mini-computer, or personal computer based computer
                systems), CONTRACTOR agrees to provide The OWNER's representatives with
                extracts of data files in computer readable format on data disks or suitable
                alternative computer data exchange formats.

                The OWNER shall require all payees (including those entering into lump sum
                major material purchase orders), to comply with the provisions of this article by
                insertion of the requirements hereof in a written contract agreement between
                CONTRACTOR and payee. Requirements to include flow-down audit provisions in
                contracts with payees will apply to Subcontractors, Sub-Subcontractors, material
                suppliers, etc. when working under any type of contract including lump sum
                agreement, unit price agreements. time and material agreements, cost plus
                agreements, etc. CONTRACTOR will cooperate fully and will cause all payees to
                cooperate fully in furnishing or in making available to the OWNER from time to
                time whenever requested in an expeditious manner any and all such information,
                materials and data required by this article of the contract.
                     “Right to Audit” Clause Survey, February/March 2004


Jurisdiction          Right to Audit Clause
                      The OWNER's agent or its authorized representative shall have access to the
                      OWNER's facilities, shall be allowed to interview all current or former employees to
                      discuss matters pertinent to the performance of this contract, shall have access to
                      all necessary records, and shall be provided adequate and appropriate work
                      space, in order to conduct audits in compliance with this article.

                      If an audit inspection or examination in accordance with this article, discloses
                      overpricing or overcharges (of any nature) by the CONTRACTOR to the OWNER
                      in excess of one-half of one percent (.5%) of the total contract billings, in addition
                      to repayment or credit for the overcharges, the reasonable actual cost of the
                      OWNER's audit shall be reimbursed to the OWNER by the CONTRACTOR. Any
                      adjustments and/or payments which must be made as a result of any such audit or
                      inspection of the CONTRACTOR's invoices and/or records shall be made within a
                      reasonable amount of time (not to exceed 90 days) from presentation of the
                      OWNER's findings to CONTRACTOR.

Region of York, ON    Section XXX AUDITS
                      The Region shall have the right to audit all books and records (in whatever
                      form they may be kept, whether written, electronic or other) relating or
                      pertaining to this contract or agreement (including any and all documents and
                      other materials, in whatever form they may be kept, which support or underlie
                      those books and records), kept by or under the control of the Contractor,
                      including, but not limited to those kept by the Contractor, its employees,
                      agents, assigns, successors and subcontractors. The Contractor shall
                      maintain such books and records, together with such supporting or underlying
                      documents and materials, for the duration of this contract or agreement and
                      for at least two years following the completion of this contract or agreement,
                      including any and all renewals thereof. The books and records, together with
                      the supporting or underlying documents and materials shall be made
                      available, upon request, to the Region, through its employees, agents,
                      representatives, contractors or other designees, during normal business
                      hours at the Contractor's office or place of business. In the event that no
                      such location is available, then the books and records, together with the
                      supporting or underlying documents and records, shall be made available for
                      audit at a time and location in The Regional Municipality of York, Ontario,
                      which is convenient for the Region.
                      This paragraph shall not be construed to limit, revoke, or abridge any other
                      rights, powers, or obligations relating to audit which the Region may have by
                      Federal, Provincial, or Municipal statute, ordinance, regulation, or agreement,
                      whether those rights, powers, or obligations are express or implied.

Regional              FISCAL RESPONSIBILITY, RECORDS, CONTROLS
Transportation        Contractor shall maintain books, records, documents and other evidence of
Commission of         accounting procedures and practices, which sufficiently and properly reflect all
Southern Nevada       costs expended in the performance of this Agreement and paid for by the RTC.
                      These records shall be subject at all reasonable times to review, inspect, copy,
                      and audit by persons duly authorized by the RTC. These records shall be kept for
                      a minimum of three (3) years after completion of the Contract.

                      REPORTS
                      Contractor shall provide RTC with reports on a daily, weekly, monthly, and annual
                      basis as needed and as described in EXHIBIT A, Scope of Work. Contractor shall
                      maintain copies of these reports for a period of three (3) years after completion of
                      the Contract. These reports shall be subject at all reasonable times to review,
                   “Right to Audit” Clause Survey, February/March 2004


Jurisdiction        Right to Audit Clause
                    inspect, copy, and audit by persons duly authorized by the RTC.

Richmond, VA        The City of Richmond reserves the right to review, on demand and without notice,
                    all of the files associated with this Contract where payments are based on
                    Vendor's record of time, salaries, materials or actual expenses. The City further
                    reserves the right to review, on demand and without notice, all files of any
                    subcontractor employed by Vendor to provide services or commodities under this
                    Contract where payments by the City are based on records of time, salaries,
                    materials or actual expenses.

Richmond, VA        The City reserves the right to audit all aspects of the contract: the vendor's
                    financial capability and accounting system, basis for progress payments,
                    compliance with applicable laws, as well as appropriate vendor records. The
                              City further reserves the right to review, on demand and without notice, all
                    files of any subcontractor employed by the Contractor to provide services or
                    commodities under this Contract where payments by the City are based on records
                    of time, salaries, materials or actual expenses. In cases where the vendor
                    maintains multiple offices, records to be audited should be maintained locally or be
                    deliverable to a location in the metro-Richmond area.

Sarasota County,    Professional Service Contracts:
FL                  Records of costs incurred under the terms of this Agreement shall be maintained
                    by the CONSULTANT and made available to the COUNTY during the period of
                    this Agreement and for one (1) year after final payment is made. Upon request by
                    the COUNTY, copies of these documents and records shall be furnished to the
                    COUNTY, without cost to the COUNTY.

                    I.       The CONSULTANT shall maintain books, records, documents, and other
                    evidence directly pertaining to or connected with the services under this
                    Agreement which shall be available and accessible at the CONSULTANT'S offices
                    for the purpose of inspection, audit, and copying during normal business hours by
                    the COUNTY, or any of its authorized representatives. Such records shall be
                    retained for a minimum of three (3) years after completion of the services.

                    Construction Contracts:
                    Access To Records. CONTRACTOR, its employees and agents including all
                    subcontractors, shall allow access to its records during normal business hours to
                    the COUNTY, its employees and agents.

Stockton, CA        Some of our revenue audits include a statement that if the audit identifies an error
                    in the amount paid to the City of more than 5%, the entity will repay the cost of the
                    audit.

                    I was reading a management services contract that had a 'flow-down ' clause, that
                    if any subcontractors were used, that agreements would include the City's right to
                    audit.

Toronto, ON         4.      OBLIGATIONS OF THE CONTRACTOR


                    THE CONTRACTOR SHALL:
                    4.14    Establish a system of fare distribution and collection for regular services in
                    accordance with Schedule “C” hereto and collect the fares for such service. As
               “Right to Audit” Clause Survey, February/March 2004


Jurisdiction    Right to Audit Clause
                provided herein, proper accounts shall be kept of all fare distribution and collection,
                and form part of the financial records available to the City for its review or audit.


                4.26    Keep proper accounting and operating records in accordance with
                generally accepted accounting principles and provide a monthly report to the City
                which shall contain, but not be limited to, the information outlined in Schedule “E”.


                In addition, the Contractor shall keep all other records as may reasonably be
                required by the City from time to time and assist the City in providing the reporting
                requirement of transit associations, Provincial or Federal Government agencies or
                similar bodies. Subject to Schedule “D” hereto, the Contractor shall also provide to
                the City monthly income statements. These reports are to be provided as soon as
                possible following the month end but no later than the 20th day thereafter.


                The records of the Contractor shall, at all times, be open to audit by the City. In
                the event that the province should during the term of this Contract supply financial
                assistance either directly or indirectly to the Contractor, then the records of the
                Contractor shall also be, at all times, open to audit by the Province.


                Year end reports are to be provided by the Contractor to the City as soon as
                possible in the new year but not later than February 5th of the same year.


                Approved audited statements are to be submitted by the Contractor to the City as
                soon as possible in the new year but not later than March 31st of the same year.


                A second version:
                7.4     The Owner shall provide the City with an estimate of the total cost of the
                        Rehabilition (together with all supporting contracts, designs, drawings,
                        specifications, quotations and material prices) in support of the application
                        for a Rehabilitation Grant at the time of application, and shall also provide
                        any further information requested by the City. Any and all of these cost
                        estimates, plans, specifications, budgets and contract documents may be,
                        where required by the City, subject to verification, third party review or
                        independent audit, at the expense of the Owner. The Owner
                        acknowledges that the City is relying upon this information and that if the
                        information in this Agreement, the associated application, and/or any
                        supporting documentation submitted to the City is, in the opinion of the
                        City, incomplete, false, inaccurate or misleading, the Grant will be forfeited
                        and not advanced by the City, and where the Grant in full or any payment
                        of the Grant has already been advanced by the City, such payments shall
                        be repaid by the Owner forthwith upon demand by the City.
                     “Right to Audit” Clause Survey, February/March 2004


Jurisdiction          Right to Audit Clause
                      8.1     The City reserves the right to require a third party review or independent
                              audit of all documentation submitted in support of the Grant application,
                              including, but not limited to:

                              (a)     estimates and actual costs of the eligible works; and
                              (b)     environmental reports and documentation.


Virginia Beach, VA    XIX. AUDITS
                      The City shall have the right to audit all books and records (in whatever form they
                      may be kept, whether written, electronic or other) relating or pertaining to this
                      contract or agreement (including any and all documents and other materials, in
                      whatever form they may be kept, which support or underlie those books and
                      records), kept by or under the control of the Contractor, including, but not limited to
                      those kept by the Contractor, its employees, agents, assigns, successors and
                      subcontractors. The Contractor shall maintain such books and records, together
                      with such supporting or underlying documents and materials, for the duration of
                      this contract or agreement and for at least three years following the completion of
                      this contract or agreement, including any and all renewals thereof. The books and
                      records, together with the supporting or underlying documents and materials shall
                      be made available, upon request, to the City, through its employees, agents,
                      representatives, contractors or other designees, during normal business hours at
                      the Contractor's office or place of business in Virginia Beach, Virginia. In the event
                      that no such location is available, then the books and records, together with the
                      supporting or underlying documents and records, shall be made available for audit
                      at a time and location in Virginia Beach, Virginia, which is convenient for the City.
                      (IF A NARROWER AUDIT PARAGRAPH IS TO BE NEGOTIATED, CONSULT
                      WITH THE CITY AUDITOR TO SEE IF CERTAIN DOCUMENTS NEED TO BE
                      MADE SPECIFICALLY AVAILABLE FOR AUDIT FREQUENTLY OR ON SHORT
                      NOTICE.) This paragraph shall not be construed to limit, revoke, or abridge any
                      other rights, powers, or obligations relating to audit which the City may have by
                      State, City, or Federal statute, ordinance, regulation, or agreement, whether those
                      rights, powers, or obligations are express or implied.


Data compiled by Bill Cook, City of Edmonton, 2004 March 18.

								
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